TORONTO (miningweekly.com) – Toronto-based Lydian International, which owns the Amulsar gold project in Armenia, has appointed a syndicate of underwriters to raise C$40-million to complete a bankable feasibility study at the asset, as well as to fund exploration at its Georgian property.

The company aims to complete the study by the end of the second quarter, with first production pencilled in for 2014.

According to a July 2011 preliminary economic assessment, the Amulsar project should produce 123 000 oz in each of its first three years, building up to 256 000 oz/y thereafter.

The study pegged initial capital costs at $162.6-million.

GMP Securities and Scotiabank are leading the underwriters’ syndicate that will sell 15.6-million Lydian shares for C$2.56 apiece. There is also an overallotment option for an extra 2.3-million shares worth C$6-million.

Prior to the share sale, the International Finance Corporation owned 16% of the company and the European Bank for Reconstruction and Development had a 7% stake.

Shares in Lydian slid 3% by late Tuesday afternoon to trade at $2.62 each on the TSX, while most other gold juniors gained.
 

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